Tier Logic in Buying Agreements
Tiered pricing in Freightools is controlled by three key elements:
- Tier Type (on the price detail level)
- Tier Evaluation Type (on the price detail level)
- Evaluation Type (on the individual tier level)
Each one serves a different purpose.
1. Tier Type (Fixed vs. Progressive)
The Tier Type is defined on the price detail level and determines how tiers are applied when calculating the final amount.
Fixed Tier
Only the single tier that matches the shipment’s chargeable quantity is applied.
The entire quantity is priced according to that one tier.
Progressive Tier
Multiple tiers can be applied cumulatively.
Each portion of the chargeable quantity is priced according to its respective tier range.
Example – Fixed
Tiers:
0–500 kg → 0.5 per kg
500–1,000 kg → 0.4 per kg
Shipment: 600 kg
With Fixed, the system applies only the 500–1,000 kg tier:
600 × 0.4 = 240
Example – Progressive
Same tiers:
0–500 kg → 0.5 per kg
500–1,000 kg → 0.4 per kg
Shipment: 600 kg
With Progressive, pricing is split:
First 500 kg → 500 × 0.5 = 250
Next 100 kg → 100 × 0.4 = 40
Total = 290
2. Tier Evaluation Type (Price Detail Level)
The Tier Evaluation Type on the price detail level determines how the amount of each tier is calculated.
Examples:
- All-In → the full tier amount is applied once the shipment falls within the tier.
- 1:6 (ratio-based) → the amount is calculated proportionally based on the chargeable quantity.
3. Evaluation Type (Tier Level)
The Evaluation Type on each individual tier determines how the shipment’s goods details are evaluated against the tariff.
For example, a 1:6 ratio means:
1 CBM = 167 kg chargeable weight.
The system compares actual weight and volumetric weight and selects the higher value as the chargeable quantity.
Example 1 – All-In Price (Fixed Tier)
Price Detail: Road Freight
Tier Type: Fixed
Tier Evaluation Type: All-In
Tier 1:
• Range: 0–500 kg
• Evaluation Type: 1:6
• Amount: 1,000
Shipment:
• 400 kg
• 1 CBM (1:6 converts to 167 kg)
Chargeable weight = 400 kg
Since the tier is Fixed and the price detail is All-In, the final price is:
1,000
Example 2 – Ratio-Based Price (Fixed Tier)
Price Detail: Road Freight
Tier Type: Fixed
Tier Evaluation Type: 1:6
Tier 1:
• Range: 0–500 kg
• Evaluation Type: 1:6
• Amount: 0.5
Shipment:
• 400 kg
• 1 CBM (1:6 converts to 167 kg)
Chargeable weight = 400 kg
Price calculation:
400 × 0.5 = 200
Final price = 200
This same logic applies whether agreements are created manually or imported via flat file.
In flat file imports, the Tier Type and Tier Evaluation Type are defined on the price detail level, and the Evaluation Type is defined on each tier row.